Trading in Target Stocks Before Takeover Announcements: An Analysis of Stock and Option Markets

Preprint OPEN
Marcus Clements; Harminder Singh; Antonie Van Eekelen;
(2007)
  • Subject: Informed Trading; Contraire Trading; Market Efficiency; Event Study

In this study we examine both informed trading and contraire trading preceding takeover announcements on US target firms. Our findings suggest that both informed trading and contraire trading exists within the period preceding takeover announcements on both the stock an... View more
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